[richywilts]

gettin near vat threshold 95% domestic work what are my options if you have already been thru this should i just go balls out and expand and pay flat rate 11% or charge my regular 6 weekly customers vat and pay 20% having a really big push too get 3 vans on road in next 6 months, then if i dont charge the vat too domestic customers can i still charge my commercial customers?

[Christopher Browne]

Do it...sooner or later you are going to have to join the ranks of unpaid tax collectors soon anyway..

[alanwilson]

you have to charge everyone vat if you are vat registered.

my advice is not to bother going any further - we are VAT (Victims of the Aggressive Taxman) registered and to be honest, its not worth it unless you plan to go huge or predominantly commercial.

[Helen]

gettin near vat threshold 95% domestic work what are my options if you have already been thru this should i just go balls out and expand and pay flat rate 11% or charge my regular 6 weekly customers vat and pay 20% having a really big push too get 3 vans on road in next 6 months, then if i dont charge the vat too domestic customers can i still charge my commercial customers?

Rich don't take this wrong, but you need to sit down and read through HMRC vat pages or go to your accountant, get his advise and ask him to explain it to you. Perhaps it is just the way you have written it.......sorry!
The threshold is £73k
You have to keep your turnover under £150k to be accepted on flat rate.
Your flat rate % in the first year will be 11% at the moment with the first year discount, but remember this goes up to 12% (% at the moment)
Flat rate works as follows:
Example: nett price = £100.00 vat @ 20% is £20.00 gross price £120.00.
You pay vat man 11% of the gross figure (120.00) which is £13.20 you keep the £6.80 (difference from the £20.00 vat) and you get taxed on that aswell.

If you don't pass vat on to your customers, you will still have to pay vat to HMRC so if you keep your nett job at £100 and don't charge the customer vat the £100 then becomes the gross figure, so at flat rate you have to pay HMRC £11.00 out of that £100.00

If you vat register you have to charge all work completed with vat.

Have a good long think about it and as I say ask your accountants advise as one thing you don't want to get wrong is vat

[C.C.S.]

like said above go big or stay under.i have a bed and breakfast customer that it's closed 3 months a year just because if stays open will be above vat threshold and he'll actually lose money

[SunShineCleaning]

Surely he would only loose money if he didn't charge VAT himself??


If you are VAT reg then you charge VAT. A mate of mine did this on domestic round no problems.

Plus you claim back all the VAT paid on fuel etc.

[Perfect Windows]

Surely he would only loose money if he didn't charge VAT himself??


If you are VAT reg then you charge VAT. A mate of mine did this on domestic round no problems.

Plus you claim back all the VAT paid on fuel etc.

He added 20% to every customer's price with NO problems?

Vin

[Steve Sed]

Surely he would only loose money if he didn't charge VAT himself??


If you are VAT reg then you charge VAT. A mate of mine did this on domestic round no problems.

Plus you claim back all the VAT paid on fuel etc.

He added 20% to every customer's price with NO problems?

Vin

That's what I thought. A 20% price increase for all. I reckon unless you are mostly commercial or very very big, it's best to stay under. Best and rather easy I'd have thought in a cash business. 

[luther1]

Surely he would only loose money if he didn't charge VAT himself??


If you are VAT reg then you charge VAT. A mate of mine did this on domestic round no problems.

Plus you claim back all the VAT paid on fuel etc.

He added 20% to every customer's price with NO problems?

Vin

That's what I thought. A 20% price increase for all. I reckon unless you are mostly commercial or very very big, it's best to stay under. Best and rather easy I'd have thought in a cash business. 

At last,someone with a brain who mentions we are in a CASH business

[SunShineCleaning]

Surely he would only loose money if he didn't charge VAT himself??


If you are VAT reg then you charge VAT. A mate of mine did this on domestic round no problems.

Plus you claim back all the VAT paid on fuel etc.

He added 20% to every customer's price with NO problems?

Vin

It was a few years ago and they were due for an increase anyway VAT was 17.5 % and he put them all up 20%. But yes without much of a fuss.

[SunShineCleaning]

Surely he would only loose money if he didn't charge VAT himself??


If you are VAT reg then you charge VAT. A mate of mine did this on domestic round no problems.

Plus you claim back all the VAT paid on fuel etc.

He added 20% to every customer's price with NO problems?

Vin

That's what I thought. A 20% price increase for all. I reckon unless you are mostly commercial or very very big, it's best to stay under. Best and rather easy I'd have thought in a cash business. 

At last,someone with a brain who mentions we are in a CASH business

I guess some people are honest and some dishonest!!

[Dave Willis]

I can't believe the lack of thought here "I'm going to stick three vans on the road - Oh hang on a minute I'll have to pay vat if I expand Derrrr"  

[luther1]

Surely he would only loose money if he didn't charge VAT himself??


If you are VAT reg then you charge VAT. A mate of mine did this on domestic round no problems.

Plus you claim back all the VAT paid on fuel etc.

He added 20% to every customer's price with NO problems?

Vin

That's what I thought. A 20% price increase for all. I reckon unless you are mostly commercial or very very big, it's best to stay under. Best and rather easy I'd have thought in a cash business. 

At last,someone with a brain who mentions we are in a CASH business

I guess some people are honest and some dishonest!!

I have a sound nights sleep every night thankyou

[Steve Sed]

I can't believe the lack of thought here "I'm going to stick three vans on the road - Oh hang on a minute I'll have to pay vat if I expand Derrrr"  

It depends what you want. I expect that a good one man round would be far more profitable than three vans having to charge domestic customers a 20% surcharge that only just reaches the VAT threshold.... unless they are commercial.

[Neil Williams]

Plus you claim back all the VAT paid on fuel etc.

Not on the flat rate

[Neil Williams]

I can't believe the lack of thought here "I'm going to stick three vans on the road - Oh hang on a minute I'll have to pay vat if I expand Derrrr"

It does make you wonder doesn't it
And as for some of the advice given, it beggers belief. I wish people would do their homework by going to the correct web sites or speaking to experts on the subject and not asking 'forum experts' on the art of how to avoid............(fill in your words)

[Dean Taberner]

Flat rate all the way,

Give me a call tomorrow evening rich on 07515286183 and ill talk you through it.

[Crystal-clear]

maybe increase prices by half of your vat Liability? so if you went for flat rate a 6% increase so that why you will cover most of the loss and not many customers will cancel cos of say 50p per £10 but they might notice a quid.

then again u could up prices by the vat value you could get away with it, we can all give each other advice on pricing but i think u must speak to a good accountant. in regards to expanding into vat.

[steve rix]

Cash is King!!!

[SunShineCleaning]

Plus you claim back all the VAT paid on fuel etc.

Not on the flat rate

True I had forgotten that.

I would hope that with each man or van that the owner would make a profit.

|What is your profit margin in % each year per man after wages?